Estonia is one of the most modern countries in the world in terms of the development of IT technologies. Since its return to independence back in 1991, this Eastern European country felt the need for deep modernization in every possible way. This little country managed to become what was labeled as a true economic miracle after the collapse of the Soviet Union. 

Estonia has a full commitment to IT technology and its development and is one of the most advanced countries in Europe in terms of modern IT projects. It is a crypto pioneer, having enacted one of the first crypto legislations worldwide. And, of course, it has one of the fastest internet connections in the world, one of the reasons why this little nation is the main target for several international tech companies and at the same time is the place of birth of important IT projects such as Skype. 

This country is a technological powerhouse, famous for developing an entire online infrastructure that is, simply, one of a kind. Estonia moved to a full online presence, allowing its citizens to access all kinds of state websites, services, and all the information they may need. Tax payments, company registration, and pretty much every other public administration activity can be conducted online and with much less bureaucracy than through traditional ways, something that is, without any doubt, inspiring. 

But this is only an introduction. If we want to know the crown jewel of the Estonian tech revolution, we have to know what has become one of the most ambitious residency programs in the world: the E-Residency or electronic residency. This program was born back in 2014 and, by April 2020, over 100,000 people around the world have already been registered as Estonian e-residents. 

Why was the E-Residency Program created? 

Today, Estonia is one of the most popular and attractive countries in the world for entrepreneurs and investors. With several investment opportunities, free zones, and a business-friendly tax policy, this small country is considered the ideal target for foreign capital holders and worldwide investors. 

The E-Residency is only one of the online services that the Estonian government offers thanks to its high online presence and its welcoming of blockchain technology. 

So, in the end, this program’s main goal is to create and ease the conditions for the foreign capital to enter the country through the creation of new businesses. Estonian government understood, since they lack raw resources or industry to generate profits, that they could instead create the perfect environment for others to generate profits through their own business, with the small country reaping ample benefits, such as new jobs and a long list of new opportunities. 

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E-Residency in Estonia: What is it and what it’s not? 

The Estonian E-Residency is a concept that gives its owner the right of being recognized by the Estonian government as an e-resident and it allows participation in the national online system. But in no way can this ID be considered as real residency. It does not give its owner the right to stay in Estonia, nor does it allow its bearer to enjoy the social benefits available to any Estonian citizen. 

The E-Residency is not an immigration program. It does not lead to actual citizenship or a passport; it is not a way to avoid any kind of tax payments in the bearer’s country of actual tax residence and, of course, it is not a travel document. But if E-residency does not provide any of the things listed above, what is the point of having it? What does one gain from it? 

The E-Residency bearer can register a company in Estonia, sign documents electronically, present accounting reports, make changes to the company, and all this can be done online. They won't even need to sign a power of attorney or personally come to Estonia. Basically, this allows managing the Estonian business from any part of the world. 

Within the benefits of this document, we can point out the following:

• Establishment of Estonian companies online via the Company Registration Portal. 
  
• Access to the tax accounts and submission of online tax returns via an e-Tax Board. 
• Access to the bank accounts with a single, smart card. 
• Opportunity to use Estonian digital signature on any official document being valid in any EU country. 
• Use of the free encrypting service with an ID card. 
• Use of the Estonian public services via the state portal “eesti.ee”. 

What are the requirements to apply for an E-Residency? 

The application for an Estonian E-Residency is a continuously evolving process. One of the significant advantages is that the applicant may present his/her application both from within and outside Estonia. The duration of the process differs depending on where the application was made from. For people in Estonia, the full process may take 10 days and for applications coming from overseas, the process may take up to 3-8 weeks, but Estonian authorities continuously work to get it done in even less time.

In general, the requirements to apply for an E-Residence are as follows: 

Filling out the Application 

• The applicant will have to upload a passport-sized photo and a good-quality passport copy. 
• They must submit a statement that describes the motivation for applying. 
• They must have a credit card to pay the 100 EUR application fee with an additional fee of 20 EUR for those who choose to collect their ID at an Estonian embassy rather than in Estonia. 
• Description of existing / future business. 
• Your CV and links to social media. 
• In rare cases, they may request a police clearance certificate from the jurisdiction of residence. 

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Wait for the approval 

Once the application has been submitted, the applicant will need to wait about 3 to 8 weeks while the Estonian Police & Customs Board conducts a background check. Applicants need to know that the authorities may request additional information while conducting the background check, which may increase the processing time. 

By the time the background check is complete, the applicant will receive an email informing the response from the state authorities. It can be that the application was either approved or rejected. 

In case of approval, the applicant will receive another email informing the status of the application and asking to set up an appointment to pick up the E-Residency card approximately two weeks later at the specified embassy or consulate. This may also vary depending on the location. 

Pick up the E-Residency card 

If the applicant gets approval for the E-Residency, they will be invited to collect the E-Residency kit at the location that was selected during the application. The kit consists of the ID card and a special card reader that allows the bearer to access Estonia’s e-infrastructure. The applicant will need to fill out some final forms and provide his/her fingerprints to finish the procedure. Once finished, the applicant is considered and recognized as an Estonian E-Resident. 

The applicant will have to pick up his or her E-Residency kit within the next six months from the approval (due to the Covid-19 outbreak and travel restrictions, specific individuals may request an extension to this rule) at any of the 38 Estonian embassies and consulates in 36 different countries.

How to use the E-Residency Card? 

Once the E-Residency card has been picked up, it can take up to 24 hours for it to be activated. The applicant may consult the Police and Customs Board’s website if the card is ready to be used. If the site says that it is valid, the card has indeed been duly activated. 

The new E-Resident will be able to connect the card reader to his/her computer and use it to sign documents, encrypt files, register a business, manage bank accounts, and much more. 

What can we do for you? 

The E-Residency program created by Estonia is simply wonderful. The idea of opening and operating a business, banking, and signing documents without the need to even be in the country is just amazing. It is an example of what continuous support and innovation of technological infrastructure may accomplish. 

At Mundo, we work with a top expert team that provides corporate services in Estonia, including the E-Residency. Contact us to take your business to the next level with this unique IT program in the EU. 

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